Jamie Spencer
Automakers Volkswagen and Stellantis have confirmed that their North American-made vehicles will be exempt from U.S. President Donald Trump’s newly imposed 25% tariffs. Meanwhile, BMW has stated that it will face levies, highlighting the challenges European car manufacturers are facing under the new trade regulations.
Tariff Impact on European Automakers
The recent tariff policies have raised concerns in Europe, where vehicles and machinery are the EU’s biggest exports to the United States. In 2023, the EU recorded a €102 billion ($110.6 billion) trade surplus in this sector, accounting for 41% of exports to the U.S.
However, some automakers have managed to secure exemptions. The White House granted a one-month tariff delay for automakers complying with the United States-Mexico-Canada Agreement (USMCA). Under this trade deal, vehicles with at least 75% of their parts originating from North America are exempt from the new tariffs.
Volkswagen and Stellantis Secure Exemptions
Volkswagen confirmed that its North American-assembled vehicles qualify for the USMCA exemption. “Our North American assembled VW-brand vehicles meet the USMCA rules of origin and are exempted from the 25% tariffs,” a spokesperson stated.
Stellantis, which owns Jeep and Dodge, expressed gratitude for the exemption and emphasized its commitment to U.S. manufacturing. “We share the President’s objective to build more American cars and create lasting American jobs,” the company stated. Stellantis was among the major automakers granted a one-month exemption, ahead of reciprocal tariffs scheduled for April 2.
BMW Faces Tariffs and Economic Challenges
German automaker BMW, however, has not been as fortunate. “The current situation regarding the introduction of import tariffs in North America is very volatile and complex,” the company said in a statement. “If this regulation remains in effect, the BMW Group would be one of the affected companies.”
BMW emphasized its commitment to free trade and warned against the negative effects of tariffs. “Tariffs hinder free trade, slow down innovation, and ultimately result in higher costs for customers,” the company added.
Market Reactions and Economic Uncertainty
Following Trump’s exemption announcement, Stellantis shares rose more than 2% in London trading. Meanwhile, UBS analysts estimated that 10% of BMW’s U.S. unit sales are imported from Mexico, with an expected earnings impact of €400 million due to tariffs.
Trump’s fluctuating trade policies have caused volatility in auto stocks. A previous 30-day tariff delay triggered a sell-off in global auto shares, further complicating the outlook for automakers operating in North America.
